This ARTICLE On The Feds Announce Future Rate Cuts And How It Impact Mortgage Rates Was PUBLISHED On August 23rd, 2019
The Feds Announce Future Rate Cuts on Friday, August 23rd, 2019 dependent on President Trump’s global trade policies.
- The Feds Announce Future Rate Cuts is not a done deal
- Chairman Powell just suggested that the interest rate cuts are on the table and the central bank is ready to react on President Trump’s trade policy decisions
- This clearly implies an uncertainty to the future economic outlook of the United States
In this article, we will discuss The Feds Announce Future Rate Cuts and the probability that is will come to fruition and how it will impact the mortgage markets.
What Powell Said About The Feds Announce Future Rate Cuts
The Federal Reserve Board cut interest rates in July by 25 basis points. The interest rate cut in July was the first time the Fed cut interest rates in 10 years. Powell is suggesting that the Fed is ready to cut interest rates if it needs to in order to keep the economy out of a Recession. Again, this is dependent on the Trump administration trade policies. This holds especially true with China.
Uncertainty With The Feds Announce Future Rate Cuts
The economy is still strong with low unemployment, no signs of major inflation, consumer spending strong, and high wages. Fears of a Recession is increasing. Wall Street’s worries about President Trump’s trade policies sent the stock market lower with triple-digit losses. The markets have concerns about the manufacturing markets.
Chairman Jerome Powell’s statement above was made as China announced they will retaliate against the Trump administration tariffs of spiking taxes on $75 billion worth of products.
- American merchandise such as agriculture, crude oil, and automobiles will be affected
- The U.S. and China are on target in increasing the tariffs in the coming weeks and months
This can hurt the economies of both countries which can affect the global financial markets.
Aftermath After Fed Rate Cut In July
The Feds Announce Future Rate Cuts is not a done deal per Chairman Jerome Powell.
- Powell did mention that the Federal Reserve Board July 31st interest rate cut “has been eventful.”
- Right after the Feds cut interest rates by 25 basis points on July 31st, 2019, President Trump declared the U.S. is going to tax an additional $300 billion dollars in Chinese merchandise
Due to this announcement by Trump, it affected the global financial markets and economy.
President Trump’s Reaction To Powell’s Announcement
How The Feds Announce Future Rate Cuts Affect Mortgage Rates
Mortgage rates are at a 36-month low. It hit another low this week. The current mortgage rates already have that the Fed will cut interest rates in September. However, this can change. If the Feds does not cut interest rates in September, mortgage rates can easily go up. There are mixed emotions on where mortgage rates will go in the near future. Many are hopeful that mortgage rates will slide lower than what is at today. Most borrowers who closed on their home loans last year in 2018 at mortgage rates in the 5.0% can benefit by refinancing today. For more information about the content of this article and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at firstname.lastname@example.org.
August 23, 2019 - 3 min read